CC&R’s: Covenants, Codes and Restrictions.

You shop around, look at several properties (old and new) and you finally decide on a brand new home in Charlotte. You decide to buy a home in a great new subdivision, and you discover that you to do so, you are now part of a homeowners' association. Homeowner’s associations (HOA) have great pluses, and some small drawbacks. One of the drawbacks, is that homeowners' associations exercise a lot of control over how you use your property, (which is also a positive for HOAs!) The transfer deeds to houses in new developments almost always include limitations on how the property can be used. Usually these limitations -- called covenants, conditions, and restrictions (CC&Rs) – place a majority of the power in the HOA.

With every homeowner's association, you have a different method of operations. Some HOAs will prove to be more iron-fisted others will be more relaxed. Much depends on the officers, (and so if you have issues with any of the CCRs, your best course of action is to participate in the HOA). There is a big range, and you will find one that works for you. Regardless of how strict the association is, you will find that most HOAs are operating only to increase and protect the home values of their members.

Before you buy that home – check out those CC&Rs. Read the CC&Rs very, very VERY carefully before plunking down any cash. If you have questions or concerns, ask questions and get legal advice. It might sound a bit scary, but you are protecting yourself. And remember, you should be confident that the CC&Rs enhance and not neuter your lifestyle. CC&Rs traditionally can (but not limited too) restrict :

1) Color you paint your house.

2) The color of the curtains or blinds visible from the street

3) Front yard landscaping

4) Where you can hang laundry, or if you can hang it.

5) Prohibit certain vehicles being parked in the driveway or street

6) Garages facing the street need to be kept neat

While to some, that may sound controlling, generally HOAs work hard to keep their membership happy.

If during your residence you discover that you need to make a change in your property, - and it is one that is restricted by the HOA – you do have a final recourse.Waivers to HOA rules are tough to obtain, but they are not impossible. The process is different from association to association, so do some checking before you buy your property. If you want to make a structural change, like building a fence or swimming pool, or adding an addition, you'll probably need formal permission from the association. But, here is a general and speculative idea of what you might have to do:

1) Submit an application for a variance. A written application.

2) Get your neighbors' permission – both/ all your neighbors. The more people on your street behind you, the better.

3) Be prepared for a formal hearing. You may also need to go up in front of you zoning board too.

We have written at length before about HOAs. WE cannot stress enough how important they are to some communities. They are not designed to be bad guys, they are there to be of assistance to home owners. Find one that you fit into, and it might be one of the best relationships of your life!

Property Manager

www.kuester.com

The Kuester Companies, a leader in all forms of HOA management in North Carolina and South Carolina was established to be involved in the management of Homeowner’s Association properties, to include mixed-use developments, town homes, and residential communities. This branch of the company fills a unique niche in the Real Estate market because we have established a proud history of providing management services in Charlotte and surrounding markets. Those throughout the North Carolina homeowners association management community know and recognize Kuester as a leader in the Charlotte HOA, Columbia HOA and Charleston HOA management arenas.

How HOAs Can Increase Property Value

We have talked about this before... but we get questions all the time about Homeowner Associations. While well-run associations will increase the value of homes in the neighborhood, hey are not for everyone. If you are the kind of person who cannot commit to participate in some way, or needs to be able to keep your pet goat in your back-yard, an HOA neighborhood may not be a good fit. As with and homeowner decision, HOAs decisions should be a strongly weighed and carefully considered.

Becoming a homeowner can be almost as stressful and taxing as becoming a parent. On a daily weekly, and monthly basis you are confronted with a series of questions and problems that have to be overcome. All this, while struggling to keep your neighbors happy and your property value up. Many homeowners find some comfort in working with other homeowners to make decision and effect changes. Homeowners Associations (HOAs) can not only offer you a spirit of solidarity, but they also have been proven to help increase your property values.

HOAs exist to "protect and enhance" a person’s property value. A HOA serves as a way to keep everyone in your little kingdom on the same page. You won’t have to worry about any adjoining homes becoming run down or uncared for... Members of the HOA keep the paint from fading, will ensure the grass is constantly cut, and that your streets are free of garbage and trash. All the rules in the HOA are spelled out for you when you purchase, so if you don’t like the regulations – you don’t have to buy. But once you join, you are expected to carry your weight! In today's market, HOA's may be of greater importance because they, if well managed, can enforce maintenance standards. With more and more homes going to rental, this can be important as one can often tell a rental by the lack of upkeep--and this affects all homes in the neighborhood! 


HOAs can also create conformity in your neighborhood. This is especially important if you live any type of subdivision. Typically, subdivisions are called planned unit developments, or PUDs and are built with a limited amount of architectural plans from which to choose. This creates a uniform look for the development – and it’s a tradition in modern American communities. An HOA can make sure that this uniformity is preserved after the developers and real estate agents have left town. We all applaud individuality, and every homeowner should have the right to express themselves in their property. A HOA will serve as a moderating force within a community, making sure no tension is built do to an extremely creative family getting a bit unleashed with their home’s exterior look.

Now before you dive into an HOA, consider that there are minuses as well. Check out the HOA’s covenant (their rules and regulations), talk to the neighbors, and give yourself some time to decide if it is a good fit for you.


Property Manager

Kuester Companies

What do HOA Fees Cover?

Dear Property Manager:

My wife and are about to buy a home in Fort Mill, SC. We are choosing between 2 we really like and the both have homeowner's associations. We are first-time homebuyers and we aren't really sure what the HOA fees generally cover. The two neighborhoods are similar, but the HOA fees are different. What do HOA fees cover and why could they be so different in the same town?

Mark K.
Fort Mill, SC

Dear Mark:

Congratulations on your upcoming home purchase! HOA fees generally pay for the common area routine yard maintenance, irrigation, ponds, security, street lighting, and the amenities maintenance (club houses, pools, tennis courts, walking trails, etc.), and neighborhood events.

Homeowners Associations are tasked with making sure HOA fees are being used properly for both routine and non-routine upkeep of the neighborhood. Routine maintenance may include lawn mowing and basic landscaping in the summer, and salting roads on icy winter days. And the non-routine things like if large trees need to be trimmed, the pool needs a repair, the HOA fees may be used to hire contractors.

If you are comparing two similar neighborhoods in the same town, but they have different HOA fees, then perhaps there is a 1 time up-front fee when you buy your home, larger fines, or maybe the amenities are different (i.e. one may have a small outside pool, and the other may have both an indoor and outdoor pool.).

The best thing to do is to get both HOA agreements are read them side by side and if you are still having trouble understanding the cost discrepancy, check with your Realtor and/or real estate attorney. They are both expert in home-buying and will be able to see if the costs make sense.

Property Manager
www.kuester.com

How an HOA Increases Home Values

Dear Property Manager:

I have always steered clear of neighborhoods that had homeowner's associations. I wanted to maintain my yard when and how I wanted and if I liked purple shutters, I felt it was my right to have purple shutters! But today my lovely wife said something that finally made me stop and think... she said "Did you know that HOAs increase a home's value?"

Now this is talking my language... and I finally am open to the idea of an HOA neighborhood. Could you tell me if my wife is correct in her statement? I guess in a lot of ways it makes sense and I feel a little silly for dragging my feet all these years! (But don't tell her I am willing to admit that!)

Morgan J.
Charlotte, NC

Dear Morgan.

According to the Community Associations Institute (CAI.org), 57 million Americans live in HOA communities. And, 78% of them believe that their HOA "protect and enhance" their property value. (Only 1 in 100 believed their association hurt property value, so the other 21 are either apathetic or undecided!)

Here are three key ways Homeowners Associations (HOAs) do increase property value:

1. Neighborhood Appearance: It is important to many that all homes and homeowners in a neighborhood follow a certain set of rules regarding how the houses look. Grass cut regularly, fences only in the back yards...no strange paint colors, etc.. Have you ever seen a neighborhood where cars are parked on the lawn all the time, and the garage is falling over--an HOA protects against this.

2. Neighborhood Uniformity: Most homes in a subdivision with an HOA look similar.This creates a uniform look for the development. Uniformity--and personalized variations on continuity make the homes more attractive to potential buyers.

3. Protect Resale Value: Because homeowner's associations force homeowners to maintain their property - such as repair broken fences, keep up lawns, etc., when it's time to sell, the house will likely be in better shape and need less repairs.

The reason HOAs exist is to protect the property value for all residents--that is their purpose--not to be a nuisance or "big brother". There may be some inconveniences along the way, but ultimately they are a benefit to all residents living in a neighborhood.

Property Manager
http://www.kuester.com/

HOA & Property Management in the Carolinas

Kuester offers a portfolio of comprehensive services from which you can choose. We recognize that one shoe does not fit all associations, so your organization selects the services that would most benefit your association. All of our managers are professionals with a minimum CMCA certification. We also offer 24-hour emergency on-call service, a professional team of experts supporting your Association Manager, web portal services and so much more!

Here is a snapshot of some the specific HOA services you can select:

Administrative – We’ll organize meetings for and assist the Board of Directors, help to develop policies and procedures, keep all records of the affairs for the Association, maintain registers of the owners, Officers and Directors, etc.

Financial Services – We’ll maintain bank accounts, send notifications to owners of delinquencies and handle subsequent collection actions as necessary, furnish monthly and year-end reports, etc.

Physical Property Services – We’ll negotiate contracts for service, coordinate property maintenance, etc.

Architectural Review Services – We’ll do regular inspections of the property and maintain records on deed restriction violations, and we’ll establish, coordinate and provide the administrative and secretarial functions of the Architectural Review Committee, etc.

We also offer a host of additional support services that many of our clients find invaluable. We would be happy to meet with you and your board to assess what services would be most beneficial, and tailor a plan to meet your association’s need. Please call us at 704.973.9016.

Check out our website for more informationa and contact info for your area.

We are your choice for the following:

IN NORTH CAROLINA

Property Management - Charlotte, NC

Property Management - Wilmington, NC

Blue Ridge Property Management in Boone, NC

IN SOUTH CAROLINA

Myrtle Beach Property Management (Myrtle Beach, SC)

Charleston Property Management (Charleston, SC)

**We also offer North and South Carolina HOA Management